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    This document is a court case summary that addresses whether stock transfers made by executors pursuant to a will provision allowing transfers for less than market value resulted in deductible losses under the tax code. The IRS argued the transfers were non-deductible bequests, not profit-seeking transactions, and no losses were proven. The lower court sided with the executors. The appeals court affirms, finding the lower court correctly decided all issues in concluding the losses were deductible.

    Original Description:

    Filed: 1952-05-29 Precedential Status: Precedential Citations: 196 F.2d 499 Docket: 10601_1

    Original Title

    Lillian Conner Kress and Fidelity Trust Company, Executors of the Estate of Frederick J. Kress, Deceased v. W. Wendell Stanton, Administrator of the Estate of Walter L. Miller, Deceased, Formerly Collector of Internal Revenue for the Twenty-Third District of Pennsylvania, Lillian Conner Kress and Fidelity Trust Company, Executors of the Estate of Frederick J. Kress, Deceased v. Stanley Granger, Collector of Internal Revenue for the Twenty-Third District of Pennsylvania, 196 F.2d 499, 3rd Cir. (1952)

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    This document is a court case summary that addresses whether stock transfers made by executors pursuant to a will provision allowing transfers for less than market value resulted in deductible losses under the tax code. The IRS argued the transfers were non-deductible bequests, not profit-seeking transactions, and no losses were proven. The lower court sided with the executors. The appeals court affirms, finding the lower court correctly decided all issues in concluding the losses were deductible.

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    Public Domain
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    7 views2 pages

    United States Court of Appeals Third Circuit

    Uploaded by

    Scribd Government Docs
    This document is a court case summary that addresses whether stock transfers made by executors pursuant to a will provision allowing transfers for less than market value resulted in deductible losses under the tax code. The IRS argued the transfers were non-deductible bequests, not profit-seeking transactions, and no losses were proven. The lower court sided with the executors. The appeals court affirms, finding the lower court correctly decided all issues in concluding the losses were deductible.

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    of 2

    196 F.

    2d 499
    52-1 USTC P 9262

    Lillian Conner KRESS and Fidelity Trust Company, Executors


    of the Estate of Frederick J. Kress, Deceased, Appellees,
    v.
    W. Wendell STANTON, Administrator of the Estate of Walter
    L.
    Miller, Deceased, Formerly Collector of Internal
    Revenue for the Twenty-Third District of
    Pennsylvania, Appellant.
    Lillian Conner KRESS and Fidelity Trust Company, Executors
    of the Estate of Frederick J. Kress, Deceased, Appellees,
    v.
    Stanley GRANGER, Collector of Internal Revenue for the
    Twenty-Third District of Pennsylvania, Appellant.
    Nos. 10600, 10601.

    United States Court of Appeals Third Circuit.


    Argued March 4, 1952.
    Decided March 18, 1952.
    Rehearing Denied May 29, 1952.

    S. Dee Hanson, Washington, D.C. (Ellis N. Slack, Acting Asst. Atty.


    Gen., A. F. Prescott, John W. Fisher, Sp. Assts. to Atty. Gen., Edward C.
    Boyle, U.S. Atty., Pittsburgh, Pa., on the brief), for appellant.
    James Milholland, Pittsburgh, Pa. (Alexander J. Barron and Alter, Wright
    & Barron, Pittsburgh, Pa., on the brief), for appellee.
    Before BIGGS, Chief Judge, and MARIS and McLAUGHLIN, Circuit
    Judges.
    PER CURIAM.

    The question presented by the appeals at bar is whether Kress's executors by

    transferring certain stock to LeClere, pursuant to provisions of Kress's will, for


    amounts less than the value of the stock at the time of the transfers, suffered
    losses deductible under Section 23(e)(2) of the Internal Revenue Code, 26
    U.S.C. 1946 ed., Sec. 23(e)(2), and the regulations applicable thereto. The
    Collectors maintain that the transfers were bequests and not transactions
    entered into for profit and that it is not shown that the estate of Kress suffered
    losses on the transfers. The court below decided the cases in favor of the
    executors and the Collectors have appealed.
    Every question presented on the appeals was exhaustively discussed and
    correctly decided by Judge Clary in his opinion reported D.C., 98 F.Supp. 470.
    Careful consideration of the briefs and the oral argument in this court convinces
    us that these decisions were without error. Accordingly, the judgments
    appealed from will be affirmed.

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